Islamabad, January 2, 2025: Prime Minister Shehbaz Sharif emphasized that economic development is intrinsically linked to political stability, stating that a nation’s economic strength is rooted in its political framework.
Chairing a meeting of the Special Investment Facilitation Council (SIFC), the prime minister highlighted significant improvements in Pakistan’s macroeconomic indicators, crediting the efforts of his economic team. He expressed optimism that 2025 would usher in prosperity and growth for the country.
“For the first time since 2018, inflation has eased to 4.1%, foreign remittances have increased by 34%, exports have risen substantially, and foreign exchange reserves have grown from $4 billion to $12.5 billion,” PM Shehbaz noted. He added that the policy rate, currently at 13%, has room to be reduced further in light of the low inflation rate.
The prime minister also announced progress in foreign investment, revealing that Pakistan had signed Memorandums of Understanding (MoUs) worth billions of dollars with Saudi Arabia, Qatar, and the UAE. “Having achieved economic stability, the country is now entering a growth phase,” he stated. “If we aim for sustainable economic development, we must focus on export-led growth. There is no alternative.”
PM Shehbaz lauded the Federal Board of Revenue (FBR) and the economic team for surpassing tax revenue targets in December 2024, collecting an additional Rs. 72 billion through improved Advance-to-Tax Ratio (ADR) mechanisms.
He also highlighted reforms that reduced container inspection time by 39% through faceless interactions, providing 89% relief to businesses. The elimination of sugar smuggling through Afghanistan was celebrated, with sugar exports contributing $0.5 billion to the national exchequer. Meanwhile, rice exports surged to $4 billion.
Addressing the issue of terrorism, the prime minister reaffirmed the government’s commitment to defeating extremist threats. “Security remains a critical challenge. Without eradicating terrorism, progress is not possible,” he asserted.
PM Shehbaz also praised stakeholders for securing an agreement to normalize the situation in Kurram, though he expressed grief over the tragic loss of innocent lives in the area.
